Industry funds stand to be amongst those most affected by auto-consolidation, according to Australian Institute of Superannuation Trustees expert David Haynes.
Addressing the Conference of Major Superannuation Funds in Brisbane, Haynes acknowledged that given the growth in group life premiums in the industry funds segment, it was likely they would be most affected.
This was in circumstances where industry funds were the fastest growing segment with respect to life premiums.
Haynes said consolidation in the number of super accounts was imperative in circumstances where there were 28 million super accounts in Australia for just 11 million workers.
He said the challenge had been to find ways of reducing the number of accounts to a reasonable level while at the same time addressing account proliferation.
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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